One of the largest IFA firms in Hong Kong, Convoy issued a statement requesting that trading of its shares be halted on the HKSE after their price plunged by more than 7%. The halt was subsequently initiated at 11.04am local time on 7 December.

The firm is a financial adviser for Hong Kong’s mandatory provident fund (MPF) pension scheme and for insurance products.

Convoy chairman Quincy Wong Lee Man said in the brief statement that the company will release an announcement “in relation to the inside information of the company”. However no time or date was given as to when this will happen.

Arrests and raids

Convoy’s share price plummeted by 7.2% to HK$0.167 (£0.015, $0.021, €0.018) following multiple media reports that Hong Kong’s Independent Commission Against Corruption (ICAC) has made several raids of offices and director homes as part of an on-going investigation.

Additionally, local news agency The Standard has reported that deputy chairwoman and executive director of financial advisers, Rosetta Fong Sut-Sam, and Christie Chan Lai-yee, an executive director, were arrested by anti-graft officers.

The agency reports Fong was escorted from her home by officers to the ICAC office where she was questioned for five hours.

Officers also searched Convoy’s head office and Fong’s home and removed some documents, The Standard reports.

Convoy and Fong have not responded to International Adviser requests for comment.

On-going investigation

According to a report by South China Morning Post, companies connected to Convoy and several of its executive directors have been investigated by region’s Securities and Futures Commission (SFC).

One of these companies, called Credit Finance Group, was ordered to suspend trading by the SFC on 24 November. Convoy holds 29.5% of the shares in this company.

In another case, the SFC ordered Town Health International Medical Group to suspend trading on 27 November. Convoy executive director Cho Kwai-chee is also executive deputy chairman at the medical health group.

The regulator said it discovered a medical group earnings report and annual report that was “materially false, incomplete or [contained] misleading information”.

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